In a recent meeting with the agency, a respected Russian legal expert described how pension calculations can be influenced by the overall career path. He stated that the pension coefficient tied to an individual personal account may fall short of expectations if wage indexation does not keep pace with earnings growth.
The expert explained that the final pension amount depends on several factors. These include the total length of service, which encompasses both years of work and certain non-working periods such as parental leave or military service, as well as the duration of insurance, which covers times when childbirth is financed through contributions transferred to an individual personal account (IAL). The contributions reach the Russian Social Fund, where they are converted into pension coefficients that ultimately determine the pension level. These coefficients are sometimes referred to as private pension coefficients (TMK).
According to the specialist, personal accounts may occasionally show outdated data if employers fail to report information to the Social Fund or make errors. The Social Fund takes steps to correct any inaccuracies when they arise.
Therefore, even if previously accumulated pension coefficients were displayed and later updated, there is no need for concern, as they are expected to return to the current state shortly, the expert noted.
Earlier, another expert from the Research Finance Institute of the Ministry of Finance and the MoiFinance.rf portal advised Russians to start thinking about pension size around ages 35 to 40. The guidance emphasized consideration of the six practical ways to grow future pension benefits.
In addition, there were clarifications on how the pension amount can be calculated, providing readers with practical steps to estimate potential retirement income and plan accordingly for long-term financial stability.